A Short Guide to Personal & Unsecured Loans

If you are finding yourself in a financial predicament then one of the best loans you can look at taking out is an unsecured personal loan also referred to as a personal loan or a signature loan. The benefit for these types of loans is that you don't need to put down any collateral to get the loan, all it takes is an online application that contains some personal details about you, about your finances, and then a credit check (on some occasions) by the loan provider.

Unsecured loans as contrary to popular belief aren't all down to whether your credit rating is unblemished or not. Many credit borrowers will loan you the money based on your good name. Unsecured loans should only be used if you need a small amount of money, a lot of loan providers in today's current economic climate will offer in the region of £50 - £1,500 depending on your circumstances so if you are looking for more, secured loans will offer you this.

Always check out the APR, which is the Annual Percentage Rate of the loan, this is worked out based on the loan amount and the risk to the loan provider, so as a rule of thumb, the higher the loan the lower the APR, but the higher the risk then the higher the APR. Generally unsecured loans are a lot more difficult to get compared to secured loans as you don't have that collateral in place should you not be able to repay the loan.

This is a short to the point guide on what unsecured loans are, what the benefits are for you and the processes undertaken by loan providers to give their decisions. For further information you can visit Provident Personal Credit who specialise in these types of loans.

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